“We posted strong results in the first quarter of 2018, highlighted by
an increase of 15.4% in total revenue over the same quarter last year,
with subscription and support revenue up 17.5% and professional services
revenue up 8.7%,” said Matt Rizai, Chairman and Chief Executive Officer
of Workiva. “We outperformed our guidance for quarterly revenue,
operating loss and loss per share.”

First Quarter 2018 Financial Highlights

Revenue: Total revenue for the first quarter of 2018 reached$59.9
million, an increase of 15.4% from $51.9 million in the first quarter
of 2017. Subscription and support revenue contributed $46.5 million,
up 17.5% versus the first quarter of 2017. Professional services
revenue was $13.4 million, an increase of 8.7% compared to the same
quarter in the prior year. Adoption of ASC 606 caused recognition of
professional services revenue to be $1.7 million less for the first
quarter of 2018 than what would have been recognized under the legacy
standard.

Gross Profit: GAAP gross profit for the first quarter of 2018
was $43.4 million compared with $37.7 million in the same quarter of
2017. GAAP gross margin was 72.4% versus 72.6% in the first quarter of
2017. Non-GAAP gross profit for the first quarter of 2018 was $43.7
million, an increase of 15.3% compared with the prior year's first
quarter, and non-GAAP gross margin was 73.0% compared to 73.1% in the
first quarter of 2017.

Loss from Operations: GAAP loss from operations for the first
quarter of 2018 was $9.5 million compared with a loss of $6.0 million
in the prior year's first quarter. Non-GAAP loss from operations was
$3.6 million, compared with non-GAAP loss from operations of $1.8
million in the first quarter of 2017. Adoption of ASC 606 caused loss
from operations to be $0.2 million less for the first quarter of 2018
than what would have been recognized under the legacy standard.

Net Loss: GAAP net loss for the first quarter of 2018 was $9.6
million compared with a net loss of $5.8 million for the prior year's
first quarter. GAAP net loss per basic and diluted share was $0.22
compared with a net loss per basic and diluted share of $0.14 in the
first quarter of 2017.

Non-GAAP net loss for the first quarter of 2018 was $3.7 million
compared with a net loss of $1.7 million in the prior year's first
quarter. Non-GAAP net loss per basic and diluted share was $0.09
compared with a net loss per basic and diluted share of $0.04 in the
first quarter of 2017.

Key Metrics

Customers: Workiva had 3,119 customers as of March 31, 2018, a
net increase of 294 customers from March 31, 2017.

Revenue Retention Rate: As of March 31, 2018, Workiva's revenue
retention rate (excluding add-on revenue) was 95.7%, and the revenue
retention rate including add-on revenue was 105.3%. Add-on revenue
includes the change in both seats purchased and seat pricing for
existing customers. Revenue retention rates are calculated using the
legacy accounting standard ASC 605. Revenue retention rates will be
calculated using ASC 606 when comparable data becomes available.

Large Contracts: As of March 31, 2018, Workiva had 335
customers with an annual contract value (ACV) of more than $100,000,
up 34.0% from 250 customers at March 31, 2017. Workiva had 151
customers with an ACV of more than $150,000, up 49.5% from 101
customers in the first quarter of last year.

Financial Outlook

As of May 2, 2018, Workiva is providing guidance for its second quarter
2018 and full year 2018 as follows:

Second Quarter 2018 Guidance:

Total revenue is expected to be in the range of $55.7 million to $56.2
million.

GAAP loss from operations is expected to be in the range of $16.9
million to $17.4 million.

Non-GAAP loss from operations is expected to be in the range of $10.0
million to $10.5 million.

GAAP net loss per basic and diluted share is expected to be in the
range of $0.40 to $0.41.

Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.24 to $0.25.

Net loss per basic and diluted share is based on 43.3 million
weighted-average shares outstanding.

Full Year 2018 Guidance:

Total revenue is expected to be in the range of $235.5 million to
$237.0 million.

GAAP loss from operations is expected to be in the range of $56.3
million to $57.8 million.

Non-GAAP loss from operations is expected to be in the range of $30.0
million to $31.5 million.

GAAP net loss per basic and diluted share is expected to be in the
range of $1.32 to $1.35.

Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.72 to $0.75.

Net loss per basic and diluted share is based on 43.5 million
weighted-average shares outstanding.

Quarterly Conference Call

Workiva will host a conference call today at 5:00 p.m. ET to review the
Company’s financial results for the first quarter and full year 2018, in
addition to discussing the Company’s outlook for the second quarter and
full year 2018. To access this call, dial 866-393-4306 (domestic) or
734-385-2616 (international). The conference ID is 4168126. A live
webcast of the conference call will be accessible in the “Investor
Relations” section of Workiva’s website at www.workiva.com.
A replay of this conference call can also be accessed through May 9,
2018 at 855-859-2056 (domestic) or 404-537-3406 (international). The
replay pass code is 4168126. An archived webcast of this conference call
will also be available an hour after the completion of the call in the
“Investor Relations” section of the Company’s website at www.workiva.com.

About Workiva

Workiva delivers Wdesk, a leading enterprise cloud platform for data
collaboration, reporting and compliance that is used by thousands of
organizations worldwide, including over 70 percent of the Fortune 500®.
Companies of all sizes, state and local governments and educational
institutions use Wdesk to help mitigate risk, improve productivity and
gain confidence in their data-driven decisions. For more information
about Workiva (NYSE:WK), please visit workiva.com.

Claim not confirmed by FORTUNE or Time Inc. FORTUNE 500® is a
registered trademark of Time Inc. and is used under license. FORTUNE and
Time Inc. are not affiliated with, and do not endorse products or
services of, Workiva Inc.

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of
stock-based compensation. A reconciliation of GAAP to non-GAAP
historical financial measures has been provided in Table I at the end of
this press release. A reconciliation of GAAP to non-GAAP guidance has
been provided in Table II at the end of this press release.

Workiva believes that the use of non-GAAP gross profit and gross margin,
non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss
per share is helpful to its investors. These measures, which are
referred to as non-GAAP financial measures, are not prepared in
accordance with generally accepted accounting principles in the United
States, or GAAP. Non-GAAP gross profit is calculated by excluding
stock-based compensation expense attributable to cost of revenues from
gross profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP loss from operations is
calculated by excluding stock-based compensation expense from loss from
operations. Non-GAAP net loss is calculated by excluding stock-based
compensation expense, net of tax, from net loss. Non-GAAP net loss per
share is calculated by dividing non-GAAP net loss by the weighted-
average shares outstanding as presented in the calculation of GAAP net
loss per share. Because of varying available valuation methodologies,
subjective assumptions and the variety of equity instruments that can
impact a company’s non-cash expenses, Workiva believes that providing
non-GAAP financial measures that exclude stock-based compensation
expense allows for more meaningful comparisons between its operating
results from period to period. Workiva’s management uses these non-GAAP
financial measures as tools for financial and operational decision
making and for evaluating Workiva’s own operating results over different
periods of time.

Non-GAAP financial measures may not provide information that is directly
comparable to that provided by other companies in Workiva’s industry, as
other companies in the industry may calculate non-GAAP financial results
differently. In addition, there are limitations in using non-GAAP
financial measures because the non-GAAP financial measures are not
prepared in accordance with GAAP, may be different from non-GAAP
financial measures used by other companies and exclude expenses that may
have a material impact on Workiva’s reported financial results. Further,
stock-based compensation expense has been and will continue to be for
the foreseeable future a significant recurring expense in Workiva’s
business and an important part of the compensation provided to its
employees. The presentation of non-GAAP financial information is not
meant to be considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP.
Investors should review the reconciliation of non-GAAP financial
measures to the comparable GAAP financial measures included below, and
not rely on any single financial measure to evaluate Workiva’s business.

Safe Harbor Statement

Certain statements in this press release are “forward-looking
statements” within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and are subject to the safe harbor created
thereby. These statements relate to future events or the Company’s
future financial performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
levels of activity, performance or achievements of the Company or its
industry to be materially different from those expressed or implied by
any forward-looking statements. In particular, statements about the
Company’s expectations, beliefs, plans, objectives, assumptions, future
events or future performance contained in this press release are
forward-looking statements. In some cases, forward-looking statements
can be identified by terminology such as “may,” “will,” “could,”
“would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,”
“estimate,” “predict,” “potential,” “outlook,” “guidance” or the
negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the
Securities and Exchange Commission, including the Company’s annual
reports filed on Form 10-K and quarterly reports on Form 10-Q, and any
amendments thereto for a discussion of certain important risk factors
that relate to forward-looking statements contained in this report. The
Company has based these forward-looking statements on its current
expectations, assumptions, estimates and projections. While the Company
believes these expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions and
involve known and unknown risks and uncertainties, many of which are
beyond the Company’s control. These and other important factors may
cause actual results, performance or achievements to differ materially
from those expressed or implied by these forward-looking statements. Any
forward-looking statements are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.